Hope Leitner, Realtor®, CRS

Here's the scenario: you have a project and need to borrow some money, but you want to do it in the most economic manner.   You've got a low rate on your existing first mortgage and don't want to do a cash-out refinance and pay a higher rate.   Is a home equity loan an option? Prior to 2018, homeowners could have up to $100,000 of home equity debt and deduct the interest on their personal tax return.   The Tax Cuts and Jobs Act of 2017 eliminated the home equity deduction unless the money is used for capital improvements. Regardless of the deductibility, lenders will still loan money to owners who have equity in their home and good credit.   The most common reasons people borrow against their home equity are: Consolidate debt with higher interest rates Make improvements on their home Refinance an existing home equity line of credit Down payment for another home or rental investment Creating reserves or available access for potenti...

For centuries, people in this country have seen homeownership as part of the American Dream. Whether they were born here or immigrated from another country, they wanted to own a piece of America. With so many prominent societal changes over the last few decades, it is fair to ask if people in America still feel the same way about owning a home. The answer was made abundantly clear in two separate reports released earlier this month. In their market trends report, As Housing Trends Shift, So Does Renter, Buyer and Seller Sentiment, Trulia revealed that: “After two years of no change, the share of Americans who say that homeownership is part of their personal “American Dream” ticked up from 72 percent to 73 percent of Americans.” At the same time, the National Association of Realtors released their Aspiring Home Buyers Profile. As the report explained: “For both homeowners and non-homeowners alike, homeownership is strongly considered a part of the American Dream. For non-owners, ...

Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set. “Today’s older adults became homeowners at a younger age than today’s young adults. Half the older adults in our sample bought their first house when they were between 25 and 34 years old, and 27 percent bought their first home before age 25.” The full breakdown is in the chart below: The study goes on to show the impact of purchasing a home at an early age. Those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-twenties and early-30s had close to $50,000 left, but traditionally had purchased more expensive homes. Many housing experts are concerned that the homeownership rate amongst millennials, those 18-34, is much lower...

A loaf of bread used to be a nickel. A movie ticket was a dime. Not anymore. Houses were also much less expensive than they are now. Inflation raised the price of all three of those items, along with the price of almost every other item we purchase. The reason we can still afford to consume is that our wages have also risen over time. The better measure of whether an item is more expensive than it was before is what percentage of our income it takes to purchase that item today compared to earlier. Let’s look at purchasing a home. The COST of a home is determined by three major components: price, mortgage interest rate, and wages. The big question? Are we paying a greater percentage of our income toward our monthly mortgage payment today than previous generations? Surprisingly, the answer is no. Historically, Americans have paid just over 21% of their income toward their monthly mortgage payment. Though home prices are higher than before, wages have risen as well. And, the most i...

Generally speaking, when you need an inventory of your personal belongings, it is too late to make one.   Sure, you can reconstruct it but undoubtedly, you'll forget things and that can cost you money when filing your insurance claim. Most homeowner's policies have a certain amount of coverage for personal items that can be 40-60% of the value of the home. Homeowners who have a loss are usually asked by the insurance company for proof of purchase which can come in the form of a receipt or current inventory of their personal belongings. The most organized people might find it difficult, if not impossible, to find receipts for the valuable things in their home.   Think about when you're rummaging around a drawer or closet looking for something else and you discover something that you had totally forgotten that you had. An inventory is like insurance for your insurance policy to be certain that you list everything possible if you need to make a claim.   Systematicall...

Some Highlights: •The cost of waiting to buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time. •Freddie Mac predicts interest rates to rise to 5.1% by the end of 2019. •CoreLogic predicts home prices to appreciate by 4.8% over the next 12 months. •If you are ready and willing to buy your dream home, find out if you are able to!

Some Highlights: •With interest rates still around 4.5%, now is a great time to look back at where rates have been over the last 40 years. •Rates are projected to climb to 5.0% by this time next year according to Freddie Mac. •The impact your interest rate makes on your monthly mortgage cost is significant! •Lock in a low rate now while you can!